“The thing about competition is that it takes the question of value creation, puts it on the end of a baseball bat, and smashes you in the face every so often” — Scott Moore membership on time? You can then develop specialized, beneficial products for them. McMonigle: We found an opportunity for inclusiveness by setting up our data rules to manage the risk of people who haven’t traditionally been able to open up a bank account. We now offer a checkless, overdraftfree account with a debit card that significantly lowers their chance of a charge off. What’s the impact of data on product development? Lawrence: There are many new products that have not yet been created that should exist, such as revamping home equity loans. But people haven’t taken the time to think about how to leverage all the industry learning on home equity loans over the last 30 years. Meara: That’s a great example. I was thinking of the relatively small number of banks that have invested in chat bots or virtual agents to replace traditional FAQs on mobile apps to improve the customer experience and deflect call volume out of their call centers. That’s terrific ROI. Or banks that have invested in
December 2016/January 2017
Kesna Lawrence “There are many new products that should exist, such as revamping home equity loans. But people haven’t taken the time to think about how to leverage all the industry learning on home equity loans over the last 30 years”
digital appointment booking that significantly improves the sales success rate. McMonigle: We look at call drivers, such as the number of questions about certain features. And often, we can alleviate that pain through the development of something very simple and actionable. For instance, we just converted to a new online platform a year ago, and we didn’t give customers the ability to unlock their account if they get their password wrong three times. We recently installed a password reset functionality within the application and had a 70% decrease in those calls the week after. Meara: That proves that even if you don’t have a ton of analytical sophistication, you can use the data that you do have to improve the customer experience. There are off-the-shelf solutions that are not expensive and relatively easy to implement. But very few banks are buying them. McMonigle: It’s not always going to be this “ahha” technological moment. Sometimes it’s really simple low-hanging fruit that’s low cost but makes a significant improvement in the client experience.